Applied Econometrics Assignment Example | Topics and Well Written Essays - 750 words - 1

Applied Econometrics - Assignment Example causes a reduction of median housing price by 0.028 in the first variant, a reduction of 0.027 in the second variant, and a reduction of 0.027 in the third variant. In the third variable, nitrogen oxide concentrations in parts per hundred million (NOX), the coefficients are 1.479 and 1.529 in the second and third variants respectively. These figures suggest that 1 percent change in nitrogen oxide concentration increases the medium housing price by 1.479 in the second variant and by 1.529 in the third variant. Beta coefficient is the measure of the sensitivity of the estimates in influencing the median housing price. In the estimates, the beta coefficient is the slope of the model summarized into ÃŽ ²0, ÃŽ ²1, ÃŽ ²4, ÃŽ ²3, and ÃŽ ²2. Normally, the coefficients would imply 1 percentage change in the estimate 1 and 2 would cause an increase of 0.566 and 0.0261. However, using the beta approach, the two coefficients are below, suggesting that they are below the median housing price. 6. Suppose in model (3) I added in the variable NOX DCHAS, resulting in ln(MVi) = ÃŽ ²0 + ÃŽ ²1RMi + ÃŽ ²2 ln(DISi) +ÃŽ ²3NOXi + ÃŽ ²4DCHAS;i + ÃŽ ²5 NOX DCHAS +Æ i . How would the interpretation of Æ 3 change in model (3) after the inclusion of this variable? What is the interpretation of Æ 5 in this model? 9. Given that the BP and White tests yield the same conclusion regarding the presence of heteroskedasticity, does this imply that the BP test is as good as the White test? Explain your reasoning in detail. Heteroskedasticity implies to the circumstance when the variability of a variable is unequal across the range of values of a second variable that predicts it. In this circumstance, it means that the Bp test is as good as the white test since in the presence of heteroskedasticity, it is expected to be different for variability, which is not the case. Heteroskedasticity does not necessarily imply an error, but only imply variableness, i.e. variability of a variable is unequal across the range of

Hofstede Analysis ( Mexico) Essay Example | Topics and Well Written Essays - 750 words

Hofstede Analysis ( Mexico) - Essay Example It is, therefore important to make a comparison between one culture and another. This paper describes the culture of Mexico by using Hofstede’s five primary dimensions that include power distance, individualism, uncertainty avoidance, career success/quality of life, and long term/short term dimensions. Power distance refers to the extent to which the less powerful members of organizations or institutions within a given nation anticipate and accept that power is unequally distributed (Harorimana 28). This dimension focuses on the fact that all people in all societies are not equal. It, therefore, analyses the attitude of culture with reference to these inequalities amongst us. Using this dimension, Mexico score is 81 while US score is 40, and this means that it is a hierarchical society (Hofstede & Hofstede 142). With hierarchical structure, it means that Mexicans accept hierarchical order where everyone has a place, which also requires no further justification. Hierarchy within an organization or an institution is perceived to reflect that centralization is popular, inherent qualities exist, and the subordinates are expected to receive orders from their employers, which they should not defy at all costs (Lee Y et. al. 106). Any foreign investor planning to venture into Mexican mar kets should expect that various interferences will characterize daily running of their businesses from the Mexican authorities. This dimension majorly focuses on addressing the extent to which interdependence a society maintains among its people (Harorimana 28). It deals with issues such as whether individual’s self-image is defined in terms of â€Å"We† or â€Å"I†. People living in individualist societies are expected to look after themselves and their families only (Harorimana 28). On the contrary, people living in collectivist societies are supposed to depend on groups, which take care of them in exchange for commitment